Frugal engineering means developing simple products for emerging markets and is becoming increasingly important for many companies. Frugal products are not cheap or inferior, they are simplified and yet qualitatively robust. But how can frugal products be developed successfully?
As innovation leaders in industry gather to discuss the front and back end of innovation in a global context, a common theme emerges. Whether expanding to a neighboring country or across oceans, entering a foreign market is always a “beyond-the-core” activity requiring the development of new competencies. One solution: identify skills first, not people.
Looking back is a natural as we look to learn lessons from past activity. But perhaps more interesting is to look forwards. In this article Rick Eagar draws on the results from recent research that surveyed the opinions of global Chief Technology Officers and Chief Information Officers and identifies key changes in five distinct but interrelated innovation management concepts as being important for the years ahead.
New approaches to innovation like open innovation and reverse innovation have little value if employees don't develop their ability to work in innovative environments. Flavour Days is one small step along that route for Ericsson. Annu Dispenza descrbes how Falvour Days came about and what they mean to Ericsson.
A mega-trend in innovation is reverse innovation. Reverse or frugal innovation describes innovations originally developed and/or adopted in the developing world which later become prominent in mature world markets. It is an interesting trend that is introducing a new perspective to innovation. It is based on the idea ‘jugaad’, which describes activity in India to adapt existing solutions using low cost technology.
Before the radical shifts in technology disrupt the industry fabric, there exists a great potential to appropriate value from the market through incremental product and business model innovations. The less intense the competition, less matured the market - larger is the potential. The emerging markets of the world the BRICs (where s could stand for the plurality as well as South Africa), have long been projected as the markets to invest in.